Core vs. C.A.B.
Posted on 29 June, 2009 | 7 Comments
Radio 702 held a discussion involving Core Group Executive Director, RJ van Spaandonk and Cool Apple Buddies Store (Sandton) owner, Sharon [Schwarma] (not sure of the spelling of her surname).
The chat “sort of” covered the following subjects:
- CAB Store being a grey importer
- Core Group being a distributor and a reseller in the same market
- Core Group’s ludicrous pricing structures
Overall, the discussion was just two people running around in complete circles doing the blame game. RJ made accusations that Apple have taken legal action against CAB for misuse of the Apple brand, Sharon denies that legal proceedings have been initiated.
Legally, there is nothing wrong with selling nor purchasing grey imports. According to CAB, all their Apple products are honoured under Apple’s International Warranty.
CAB claim that Core Group obtain their Apple products from a reseller in Europe and that CAB get theirs from a reseller in US, implying that they get their products from similar channels. RJ denied that they purchase from a reseller, saying that Core Group purchase from Apple Europe directly. Surely Apple have the same agreement with a local reseller/distributor in Europe (http://www.apple.com/uk/buy/distributors/) that Apple have with Core Group here in SA? Do Apple Inc. have offices in the Europe?
When asked by a caller what the reason was for their high prices, comparing prices on a Mac Book Air which retails for $1499 in the US and R18,999.00 in SA, RJ said that the prices quoted in SA are inclusive of VAT so that needs to be subtracted. So that makes the SA price R16,665.79. RJ also said that due to fluctuations in the exchange rate, they have leveled their rate of exchange at R10 to compensate (Currently R7.58). So that makes the US price here in SA about R14,990.00.
So, in essence, there is only a R1,675.79 difference in price. But the reality is, even though Core Group have fixed the exchange rate, they are still purchasing products at the current exchange rate (R7.85) and if the exchange rate is fixed, it’s usually only fixed on a weekly average. Core are more than likely receiving a reseller discount of some sort on that as well. I don’t want to venture a guess, but according to statements from CAB on Radio 702, an Apple Premium Reseller will obtain 15%-20% discount on products. As a distributor in South Africa, one would assume that Core Group receives a greater discount percentage, thereby decreasing the price even more so. So, that pricing structure from RJ doesn’t hold water with me.
RJ was asked why they are retailing and distributing in the same market to which RJ simply did not offer an suitable answer, only to refer back to Core’s “pricing structure”.
So, all in all, I feel that the 40min debate proved absolutely nothing, other than confirming that it is not illegal to purchase, or sell grey imported products in South Africa.
UPDATE: Here is the Podcast of the discussion on Radio 702 - Radio 702 – Grey Import Discussion – Core vs. CAB
7 Responses to “Core vs. C.A.B.”
Leave a Reply
Search
Find Me Online
-
June 29th, 2009 at 1:29 pm
HiFi corp has been selling “Grey” imports for years, so what’s the problem?
I think that Apple prices here are high, so the consumer will determine what the price should be. My friend bought his Mac book online from the USA due to prices here being so high. If the local suppliers want to make more money they should reduce their sell price here in SA and then they would gain business from people trying to get a good deal from another country.
It’s a win win for the consumer and the retailer.
2c
June 29th, 2009 at 1:34 pm
Exactly. RJ kept going on about warranty and crap and grey importing, etc. and kept skating around the pertinent subjects. Grey imports or not, they are still covered by Apple warranty. CAB store offer an immediate exchange on out of box issues. Otherwise an Apple Certified Technician will fix it. So it annoys me that Core Group start websites like http://www.stopgrey.co.za/ and purposely advertise certain companies as grey importers. Surely this could amount to deffamation?
June 29th, 2009 at 1:35 pm
” Do Apple Inc. have offices in the Europe?”
I believe we are one of the few English speaking countries where Apple inc does not have an official presence.
Apple online retail stores (not iTunes stores) are available in the US, UK, Canada, Australia and New Zealand (and more) – in South Africa we actually leave the Apple website to go to the ZAStore website – The Core group’s online store.
I hope CAB succeeds in obtaining a distribution licence for SA.
Additionally what I *really hope for is Apple inc to provide their own presence within our borders (with a store built into the ‘www.apple.com/za’ website rather than the shocking ZAstore offering).
Until the sale numbers make sense to do so, I do not see Apple inc making the move soon.
June 29th, 2009 at 1:39 pm
I’m not concerned about who or where the products come from really. I am however concerned about the lack of service that Core offers as the “authorised distributor” of Apple products.
I own several Mac from Mini’s, Macbooks to Macbook Pro’s and if there has ever been any issue it was a nightmare dealing with core.
I also have an issue with the fact that Core operates as a wholesaler and a retailer – surely there is some kind of law against this?
June 29th, 2009 at 3:34 pm
Amen brother! Hate the incestuous relationship Core has with the iStores – WTF – clever thing to do as a evil genius but not good for the Apple brand.
EISH! Would sell more and support more Macs if it wasn’t for Core – personal opinion.
I love my apple. (without the core, don’t eat those)
July 7th, 2009 at 4:26 pm
Hey Justin,
Thanks for this, not a 702 listener so I would have never known about their little chat, I would love to see a new disty in SA for Apple products, as the service received from both Core and CAB is appaulling, I’ll check back here in future to see if you have any updates.
Matt(stillwithouthisbattery)
September 18th, 2009 at 2:30 pm
There is so many so called grey importers in south africa it is not even funny. I’ve worked for both these companies, non of them know what they are doing or what a grey Apple in S.A. looks like!! Core fixes “grey” computers cause they are obligated to. By the way I went to an Apple shop in Dar Es Salaam Tanzania (very 3rd world) where the R1 = 320tsh but still got my Mac at R2500.00 cheaper than S.A.